Taxation

Smokers every last(predicate) everyplace New York be frustrated by the rise in monetary value for a stockpile of cig atomic number 18ttes. Smokers eachowing now give $2.75 per pack in appraise incomees comp atomic number 18d to a $1.50 that it was merely two weeks before (2008, Fox News). New York has the highest taxes for cigarettes alto urinateher over the nation. What is a smoker to do when cigarettes cost near $10 a pack? Some might quit. With the upstart tax increase over 140,000 smokers lead quit pot (2008, Newport Television). However, others leave behind rely on buying pitch-black cigarettes or smuggled marketplaceplace cigarettes. Some guess that thither is no conundrum with buying cigarettes illegally (cigarettes that are non taxed). What the establishment does non realize is that smokers who have had the habit for numerous amounts of years leave behind not quit smoking. They will do anything to find them cheaper. This makes al l convenient stores, cigarette trucks, and cigarette factories easy targets for black market sellers. In New York it is literally more(prenominal) profitable to commandeer a cigarette delivery truck than an armored truck. (2008, Fleenor). Consumers are not the only ones affected by the rise of taxes on cigarettes the sellers are affected as well. Many people would not believe that the producers of products pay taxes on their products as well, especially when the price in taxes rises, like cigarettes have. This all depends on the supply and ingest curve. afterwards taxes are added, the supply curve shifts up, when the admit decreases the consumers pay slight tax, however when the demand increases the consumers pay much more taxes. The demand curve has been decreasing after the increase in taxes because smokers are turning to the black market or bootleg cigarettes preferably of paying for taxed cigarettes. It also depends on the age, younger smokers will endure t o quit when prices rise, while older smokers! (who have a slight sensitive demand) pay all their taxes for the cigarettes. Producers pay more tax when the demand is relatively flat and the supply is steep. When...If you penury to get a full essay, order it on our website: OrderEssay.net

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